What are the differences between filing for Chapter 7 and Chapter 13 bankruptcy?

Filing for Chapter 7 or Chapter 13 bankruptcy in Washington State have very different outcomes. Chapter 7 bankruptcy is a liquidation process. This means that your non-exempt assets are sold and the money is used to pay off your creditors. In Washington State, some property is exempt from being liquidated but these exemptions vary from county to county. Once your debts have been paid, your financial obligations are discharged or eliminated. After your Chapter 7 bankruptcy is complete, you can begin work on rebuilding your credit. Chapter 13 bankruptcy is a repayment plan. This process will allow you to keep your non-exempt assets such as your home and car, while restructuring your debts into a 3-5 year repayment plan. Your creditors will be paid with the money that you earn during the repayment period. Once the repayment period is complete, any remaining unsecured debts are discharged. When you file for Chapter 13 bankruptcy, you must complete a credit counseling course and certain other requirements in order to receive a discharge. When considering whether to file for Chapter 7 or Chapter 13 bankruptcy in Washington State, it is important to realize that both processes have their advantages and disadvantages. So it is best to talk to a bankruptcy attorney in order to determine which option is best for your personal situation.

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What are the differences between filing for Chapter 7 and Chapter 13 bankruptcy?

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